Capital Controls and the Cost of Debt
IMF Working Papers, June 9, 2017
Source details
- Canonical URL
- Capital Controls and the Cost of Debt
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Bibliographic details
- Authors: Eugenia Andreasen, Martin Schindler, Patricio A Valenzuela
- Published: June 9, 2017
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781484303313.001
Summary and main finding
- Using a panel data set for international corporate bonds and capital account restrictions in advanced and emerging economies, the authors show that restrictions on capital inflows produce a substantial and economically meaningful increase in corporate bond spreads.
- Restrictions on outflows do not show a robust significant effect on corporate bond spreads.
Authors and publication
- By Eugenia Andreasen, Martin Schindler, Patricio A Valenzuela
- June 9, 2017
- IMF Working Papers, Working Paper No. 2017/135
Data and methodology (high-level)
- Analysis based on a panel data set for international corporate bonds and capital account restrictions across advanced and emerging economies.
- Focus on the relationship between capital account restrictions (inflows and outflows) and corporate bond spreads.
Heterogeneities and channels
- The effect of capital controls on inflows is particularly strong for more financially constrained firms.
- This finding establishes a novel channel through which capital controls affect economic outcomes: by increasing the cost of debt for financially constrained firms.
Key statistics and publication metadata
- Pages: 26
- Volume: 2017
- Issue: 135
- DOI: https://doi.org/10.5089/9781484303313.001
- Stock No: WPIEA2017135
- ISBN: 9781484303313
- ISSN: 1018-5941
Keywords and subject tags
- Subject: Balance of payments, Bonds, Capital account, Capital controls, Corporate bonds, Financial institutions, Financial services, Yield curve
- Keywords: bond, bond market market capitalization, Bonds, capital account, Capital account, capital account restriction, Capital controls, control, Corporate bonds, debt capital, firm, Global, market illiquidity, operating income, risk diversification, short-term debt, WP, Yield curve
Source: IMF Working Paper "Capital Controls and the Cost of Debt", June 9, 2017.
Content in this bundle
- Capital Controls and the Cost of Debt , WP/17/135, June 2017